Exclusive! Uganda, 22 Other Countries On Alert As Lycamobile Files For Bankruptcy In UK Over £70m Tax Fraud

Exclusive! Uganda, 22 Other Countries On Alert As Lycamobile Files For Bankruptcy In UK Over £70m Tax Fraud

Posted on 30 October 2024 0
Viewers: 63,595

 By Spy Uganda

Kampala: Lycamobile, an internationally known mobile virtual network operator (MVNO), is facing severe financial and legal challenges after an eight-year VAT dispute with HM Revenue and Customs (HMRC) in the UK.

HMRC has filed a winding-up petition against Lycamobile UK Ltd, seeking to recover £51 million in unpaid taxes. The petition was submitted to the Insolvency and Companies Court in London, following the company’s loss in a protracted tax tribunal battle earlier this year.

This marks a critical turning point for Lycamobile, which could face compulsory liquidation unless it reduces the debt or provides evidence to dispute the claim.

The company has also been embroiled in other legal troubles, including the conviction of its French entities for money laundering and VAT fraud in 2023. These controversies have cast doubt on Lycamobile’s future, particularly as the UK proceedings are happening alongside similar financial challenges in Germany.

Below Is A Detailed Report On Lycamobile’s Alleged Illegal Activities 

Report on Lyca Group’s alleged Unlawful Activities and the SRI LANKA TELECOM PLC Share Sale

In 2021, Lycamobile’s German subsidiary, “Lycamobile Germany,” rebranded to “Amalasandan Dienstleistungen GmbH” before filing for bankruptcy due to a €70 million tax debt. The company’s failure to pay VAT on sales in Germany and its disputed relationship with an Irish sister company have resulted in multiple court battles and insolvency proceedings.

As Lycamobile faces insolvency in both the UK and Germany, its global operations across 22 countries, including Uganda are on high alert.

Legal experts are advising creditors to act swiftly to protect their interests as the company navigates these complex legal and financial difficulties.

The outcome of these insolvency proceedings could negatively impact Lycamobile’s global operations, as the telecom group, owned by British-Sri Lankan entrepreneur Subaskaran Alirajah, faces heightened scrutiny.

Stakeholders are closely monitoring the broader impact of the financial collapse of its German subsidiary.

Lyca Group started as a Calling Card company founded by Subaskaran Allirajah, a Sri Lankan Tamil entrepreneur. The group’s primary business is Lycamobile and the bulk of its revenue is claimed to be generated from its SIM products. Lycatel, also a part of Lyca Group, targets customers within expatriate and ethnic markets that want to make international calls.

In recent years, the Lyca Group has been expanding its presence in Sri Lanka, with Allirajah acquiring media businesses in the country. However, these acquisitions have raises concerns due to the alleged use of proxies to bypass Sri Lankan laws restricting foreign ownership of media companies.

Recently, there have been reports of the potential sale of shares in Sri Lanka Telecom PLC, the country’s largest telecommunications provider, to Allirajah or the Lyca Group which raised concerns about the potential risks associated with allowing a company with a questionable background to own a significant stake in the national telecom infrastructure.

We Shall Keep You Updated 

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